New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-13
THE PRESIDENTS GRAVE MISTAKE.

Recently official statements have been
published showing that the revenue for eleven
months ending May 81 exceeded that OF
the corresponding part Of the previous year
by $34, 67e, 23s "a. Anxiety regarding bust
ness prospects naturally results from these
publications when they are considered in oon-
noction with the extraordinary activity In
real estate and other speculations which the
imitation of the currency by the Administration
has promoted. Rapid contraction coming
upon markets thus unnaturally stimulated by
excessive supplies of currency would affect
prices more than at another time, and 1t Is
not perceived that some contraction can be
avoided, the surplus revenue continuing with
out heavy purchases of bonds, which, Wash
ington dispatches to Democratic journals state,
the Administration will make with great
reluctance, If at ALL
When the Treasury Department was under
the personal direction of Secretary Manning
and Treasurer Jordan, who had been selectcd
as especial friends of the late Mr. Tlden, its ju-
dicious management in many respects elected
public confidence But Mr. Manning became
incapacitated, and Mr. Fairchild, as Acting
Secretary, entered last summer upon new
policy. Elections OF Congressman were ap-
preaching and the verdict of the people on
the course of the President was feared 1t was
felt that, unless public attention could be
withdrawn from mistakes of the Admins
iraton by unusual activity in business, pol
lt;cal results would bo disastrous. What Mr..
Fairchild did it must be inferred was done
with the full consent, il no. at the direction
of the President The Administration, in
Short radically changed its financial policy in
order to obtain more favorable results in the
election.
ID has been shown that moro than
$SO,OOO,OOO was added to the circulating
medium in about nine months, great part
Of this addition being made while the political
campaigns were in progress. The effect has
been seen in towering speculation in stocks
in repeated attempts to hoist the price OF
wheat without regard to prices in other
countries, in bold and dangerous speculations
in oil, pork products, cotton and coffee, and
finally in tho real estate fever which has
spread so widely over the South and West.
adding some thousands Of millions to the
nominal value Of property and enormously TO
tho aggregate Of mortgage Indebtedness. But
now, with all these effects of imitation al
their height, tho country is confronted with
another effect, remarkable Increase of I'M
ports and consequently of revenue. and at the
same time the power to dispose Of surplus
revenue by the redemption Of bonds vanishcs
with July l.
OF all financial conditions the worst is that
of uncertainty and violent fluctuation in The
volume Of the circulating medium. Wanton
initiation does mischief needless contraction
does mischief but a state Of alternate imitation
and contraction is far worse than either.
This is the direct fruit Of the Administrators
anxiety TO secure last fall through artificial
indications Of prosperity popular approval
which it's conduct in other respects had not
insured The question now Is how far the
hurtiul consequence of such an abuse OF
trust can be avoided.
1t has already been shown that an extra
session in October would be an uncertain
remedy Congress is not now antecedently more
likely to act with wisdom than it was lart
winter. The fight Of factions within the
Democratic party will only be intensified by
tho approach Of tho Presidential election. But
tho President will then DO enabled to plead
that tho responsibility rests not with him,
but with Congress for refusing ncedful
measures Thus it Is possible that the extra
session may be called, "a the expansion Of
currency came, not as a step for the good OF
the country, but in the hope that it may help
the Administration politically.